Ripple bets on stablecoins and RWA, aiming to transform XRPL into a new hub for institutional Decentralized Finance.

Ripple has placed the core of its institutional DeFi strategy on stablecoins and the tokenization of real-world assets (RWAs). The XRP Ledger (XRPL) recorded over $1 billion in stablecoin volume within a single calendar month and has ranked among the top ten in RWA activity chains, solidifying its position in institutional adoption. Ripple's latest roadmap focuses on native lending protocols, compliance tools, and privacy technologies, aiming to transform the XRPL into a settlement layer capable of handling institutional-level financial activities at scale.

1. XRPL Roadmap: Focus on Native Lending and Compliance

According to Ripple's latest roadmap, tokenized assets and stablecoins are no longer experimental concepts; they are quickly becoming core use cases for banks, asset management companies, and fintech firms. Ripple's goal is to make XRPL a mature settlement layer, enabling these assets to be issued, traded, and managed at scale.

An important upcoming feature is the native lending protocol, expected to be released in version XRPL 3.0.0. This protocol will directly introduce pooled lending and credit underwriting at the ledger level. Its design aims to provide low-cost loans while meeting the corresponding regulatory requirements. Institutions will be able to efficiently access capital and comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) standards.

Compliance tools are another major pillar of this strategy. Ripple has launched the Credentials tool, which can be associated with Decentralized Identities (DIDs), allowing trusted issuers to verify their KYC status or certification level. Additionally, the Deep Freeze tool will enable issuers to block operations on flagged accounts, thereby ensuring compliance with the rules. Other tools such as multi-signature custody and Permissioned DEXs provide stronger control without leading to system centralization.

2. Empowering Institutions DeFi: Privacy and Multifunctional Token Standards

Privacy is also a core focus. Ripple is developing Zero-Knowledge Proof (ZKP) technology to provide confidential yet auditable transactions. The private Multi-Functional Token (MPT) will be launched first, allowing for private trading of assets while still maintaining regulatory Compliance. This approach strikes an appropriate balance between consumer privacy needs and regulatory requirements.

The core of these changes is the Multi-Functional Token (MPT) standard. MPT allows for the representation of complex financial instruments such as bonds, funds, or structured products on the XRPL. The institutional market supports the use of MPT because they do not require complex smart contracts and can include multiple metadata. Recently, Ripple expanded its RLUSD stablecoin to Aave's Horizon RWA market, highlighting the traction that tokenized assets have gained in a regulated environment.

The Ripple roadmap also includes other updates, such as bulk transactions, permissioned grants, and scaling tools. These tools are designed to keep fees on the XRPL low and ensure fast settlement. Additionally, the EVM sidechain provides developers with greater flexibility and supports Solidity and XRPL liquidity.

Conclusion

Ripple is executing a far-reaching strategy aimed at transforming its XRP Ledger into a comprehensive and Compliance-focused DeFi ecosystem tailored for institutions. By making stablecoin and real-world asset tokenization the core, and supplemented with native lending protocols, robust Compliance tools, and privacy technologies, Ripple is not only developing a payment solution but also providing a trusted alternative with blockchain advantages for traditional financial infrastructure. The recent significant progress of XRPL in stablecoin volume and RWA rankings clearly demonstrates the effectiveness of its strategy. This approach, which seamlessly integrates on-chain innovation with traditional financial Compliance, allows XRPL to directly connect with the demands of the global banking and asset management sectors, heralding a blockchain-driven, more efficient, and more inclusive future for global finance.